Success is defined differently by every person. In business, success is often defined by consistent profitable growth. Below is a checklist with simple questions you can ask yourself to assess how well you are positioned for profitable growth and what changes you can make to ramp up future growth.
First you must understand where your business is. Then, identify what processes you need to implement that will build a foundation for the company’s future success.
Successful companies include these components:
- Sufficient working capital and cash flow for operations
- Profitable sales and healthy margins
- Competent leadership
Is your business as profitable as you’d like it to be? What actions can you take to increase your bottom line? Look at every business function and think about what you can change or improve.
- Vision / Value
- Are you happy with the direction your business is headed?
- What are the 2-3 things you hope to improve this year?
- Do your employees understand the vision you have for your business?
- Marketing strategies
- Who is your ideal customer? What problem are you solving for them?
- List 2-3 trends that are emerging in your market. How can you take advantage of these?
- How can you better educate customers about your product or service?
- Sales strategies
- How are you generating leads? What can you do to increase them?
- What is your sales conversion rate? Has this changed over the past years?
- How does your pricing compare to the industry?
- Operating strategies
- Is your technology current? Does it support your employee productivity? What’s the plan for updates and improvements to increase efficiency?
- Have you reviewed your human resourcing plan? Staff turnover is costly, so retention of quality workers is essential.
- Are you reliant on the supply chain, have lead times changed? How are you addressing this?
- Products / Services
- Have you reviewed your sales details to know what is selling and what the margin is? Are there products or services that should be discontinued?
- How are you monitoring your quality? Do customers perceive your offering with the quality you intend?
- Why are people buying your products and services? How can you expand on the most popular ones to increase sales?
- Financial strategies
- Are your financial records up to date– Monthly Bank reconciliations? Expense transactions?
- Are you reviewing your Profit and Loss statement and Balance sheet each month? What are the trends? If they are negative what are you doing to prevent further decline?
- Are you current on all taxes owed?
- Is your working capital and cash flow adequate to support your business? If not, what steps are you taking to improve it? Increase sales, collect Accounts Receivable, decrease expenses, extend Accounts payable terms?